**XRP’s Long-Term Scarcity and Deflationary Potential: What Could Drive Prices by 2035?**
*Written By: Follow TheCryptoBasic*
*Author: Abdulkarim Abdulwahab*
As XRP continues to trade under $2.30, renewed interest is growing around its long-term scarcity and deflationary nature. The XRP Ledger (XRPL), known for its fixed supply of 100 billion tokens, steadily burns XRP through transaction fees. Currently, XRPL burns average around 5,000 tokens daily. Although this is small in scale, some analysts believe these incremental burns, combined with future increases in network activity, could meaningfully reduce XRP’s total supply over the next decade.
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### The Math Behind a 40% Supply Reduction
Currently, XRP has a circulating supply of about 59.91 billion tokens, with a market capitalization of roughly $150 billion at a unit price of $2.50. If the total supply shrinks by 40% by 2035, XRP’s total available tokens would drop to approximately 60 billion. Meanwhile, the circulating supply could be around 40 billion. This considers Ripple’s escrow and assumes ongoing burns alongside corporate participation in supply reduction.
Under this scenario, if demand stays constant and supply shrinks by 40%, the price could be around $4.17, based on a proportional valuation model. This would represent a 49% increase from its current level, driven solely by scarcity rather than demand growth.
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### The Demand Factor
Price movements in crypto rarely depend on supply alone. XRP’s long-term performance will hinge mostly on demand-side catalysts such as:
– Institutional adoption
– Payment volume through RippleNet
– Growth of tokenized settlements on the XRP Ledger
If global utility expands — especially through Ripple payment solutions, financial integrations, and corporate treasuries — the combination of rising demand and contracting supply could amplify price gains.
For instance, a 50% rise in demand alongside a 40% supply cut could theoretically send XRP toward $6.25. Meanwhile, with a doubling in demand, prices could surpass $8.
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### Impact of Accelerated Burns
The deflationary impact becomes even more pronounced if network activity accelerates. If XRP burns 15,000 to 20,000 tokens per day — a three- to fourfold increase from current levels — its total supply could shrink more aggressively. By 2035, such an intensified burn rate could erase over 100 million XRP.
This tightening of circulating liquidity suggests prices could reach the $12-$16 range, assuming demand remains constant.
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### Realistic Outlook: Slow Burn, Long-Term Impact
Despite the bullish math, achieving a 40% supply reduction by 2035 remains a challenging feat. The current burn rate of 5,000 XRP per day translates to roughly 1.8 million XRP per year, or about 20 million XRP burned by 2035 — a relatively small fraction of the total supply.
To achieve a meaningful supply shock, XRP network usage would need to surge exponentially to drive higher transaction fees and faster burns. Still, XRP’s fixed maximum supply and steady deflationary model provide a foundation for long-term appreciation. Even moderate increases in daily burns, paired with rising adoption, could reinforce its scarcity narrative.
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### XRP Price Beyond Supply Reduction
Beyond supply reduction through token burns, analysts have projected far more ambitious price targets for XRP by 2035, well beyond what supply dynamics alone would suggest.
– Tradeship University founder Cameron Scrubs believes XRP could become the number one cryptocurrency by 2030, potentially overtaking Bitcoin.
– Noted XRP commentator Coach JV shares a similar sentiment.
– These outlooks envision XRP prices surpassing $300.
– The Changelly exchange predicts XRP could reach $115 by December 2034.
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### Disclaimer
This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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### About the Author
**Abdulkarim Abdulwahab** is a seasoned crypto journalist who has established himself as a trusted voice in the world of blockchain and Web3. His extensive knowledge of the crypto space enables him to break down complex concepts into accessible language.
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